North Koreans Begin Exchange of New Currency

North Korea said Monday it would issue new won currency this week that would in effect lop two zeros off the old – requiring 1,000-won bills, for example, to be exchanged for 10-won notes with, theoretically, the same buying power. It said it would limit the amount of old currency it would accept in exchange, to the equivalent of about $40 worth at unofficial exchange rates.

The rest of the money would be scrapped in an apparent effort to make people more dependent on the government, the most far-reaching of Pyongyang’s recent moves to crack down on market activities perceived to weaken its power.